3rd-Quarter 2011 Domestic Air Fares Rose 6.2% from 3rd Quarter 2010

Top 100 Airports: Highest Fares at Cincinnati, Lowest Fare at Atlantic City

Thursday, January 26, 2012 - Average
domestic air fares rose to $361 in the third quarter of 2011, up 6.2 percent
from the average fare of $340 in the third quarter of 2010 (Table 1), the U.S.
Department of Transportations Bureau of Transportation Statistics (BTS)
reported today. Cincinnati had the highest average fare, $488,
while Atlantic City, NJ, had the lowest, $167 (Table 3).

Third-quarter fares decreased 2.4
percent from the second quarter (Table 2). Quarter-to-quarter changes may be
affected by seasonal factors.

BTS, a part of the Research
and Innovative Technology Administration, reports average fares based on
domestic itinerary fares. Itinerary fares consist of round-trip fares unless
the customer does not purchase a return trip. In that case, the one-way fare is
included. Fares are based on the total ticket value which consists of the price
charged by the airlines plus any additional taxes and fees levied by an outside
entity at the time of purchase. Fares include only the price paid at the time
of the ticket purchase and do not include other fees, such as baggage fees,
paid at the airport or onboard the aircraft. Averages do not include frequent-flyer
or "zero fares" or a few abnormally high reported fares.

Not
inflation-adjusted, the $361 third-quarter 2011 average fares were up 0.5
percent from the previous third-quarter high of $359 in 2008. Unadjusted third-quarter
fares dropped to $307 in 2009 during the recession. Third-quarter 2011 fares
were up 17.5 percent from the 2009 low, not adjusted for inflation (Table 6).

Third-quarter 2011 fares, not adjusted for
inflation, were the second highest of any quarter, slightly below the high of
$370 in the second quarter of 2011. Adjusted
for inflation, third-quarter 2011 fares in 1995 dollars were $244, down 18.0
percent from the third quarter of 2000, which, at $297, was the
inflation-adjusted high for any third quarter since 1995 (Table 1). BTS air
fare records begin in 1995. See BTS Air
Fare web page for historic data.

Passenger airlines collected 71.4 percent of
their total revenue from passenger fares during the third quarter of 2011, the
most recent quarter available (Table 1A).

Air fares in the third quarter of 2011 increased
7.1 percent from the third quarter of 2000, not adjusted for inflation, compared
to an overall increase in consumer prices of 30.6 percent during that period.
In the 16 years from 1995, the first year of BTS air fare records, air fares
rose 25.5 percent compared to a 48.1 percent inflation rate (Table 6). The
average inflation-adjusted third-quarter 2011 fare in 1995 dollars was $244
compared to $288 in 1995 and $297 in 2000 (Table 1).

See tables below for the following information
about the top 100
airports based on 2010 originating
passengers.

Table 3: Five highest and five lowest average
fares in the third quarter: Cincinnati had the highest average fare, $488, while
Atlantic City had the lowest, $167. For the Top 100 Airports, see Table 8 on the BTS website.

Table 4: Five largest increases and five largest
decreases from the third quarter of 2010 to the third quarter of 2011: Bellingham,
WA, had the largest increase, 18.0 percent, and Charleston, SC, had the largest
decrease, 10.1 percent. For the Top 100 Airports, see Table 9 on the BTS
website.

Table 5: Five largest increases and five largest
decreases from the third quarter of 2000 to the third quarter of 2011: Burbank/Glendale/Pasadena,
CA, had the largest increase, 57.6 percent, and White Plains, NY, had the
largest decrease, 43.1 percent. For the Top 100 Airports, see Table 10 on the BTS
website.

See the BTS Air Fare web page for average fares for the top 100 airports. Rankings
can also be found on the BTS website. Fares for Alaska, Hawaii and Puerto Rico airports,
which are not included in rankings, are available on the web page. Average
fares for all airports are also available. Since average fares are based on the Origin
and Destination Survey 10 percent ticket sample, averages for airports with
smaller samples may be less reliable.

Fares based on
domestic itinerary fares. Itinerary fares consist of round-trip fares
unless the customer does not purchase a return trip. In that case, the one-way
fare is included. Fares are based on
the total ticket value which consists of the price charged by the airlines plus
any additional taxes and fees levied by an outside entity at the time of
purchase. Fares include only the price paid at the time of the ticket
purchase and do not include other fees, such as baggage fees, paid at the
airport or onboard the aircraft. Averages do not include frequent-flyer or "zero fares" or a few abnormally high
reported fares.

Table 2: Quarterly Change in
Average Domestic Airline Fares

Percent
Change by Quarter

Fares based on
domestic itinerary fares. Itinerary fares consist of round-trip fares
unless the customer does not purchase a return trip. In that case, the one-way
fare is included. Fares are based on the total ticket value which consists of
the price charged by the airlines plus any additional taxes and fees levied by
an outside entity at the time of purchase. Fares include only the
price paid at the time of the ticket purchase and do not include other fees,
such as baggage fees, paid at the airport or onboard the aircraft. Averages do not include
frequent-flyer or "zero fares" or a few abnormally high reported fares.

Fares based on domestic itinerary fares. Itinerary fares consist
of round-trip fares unless the customer does not purchase a return trip. In
that case, the one-way fare is included. Fares are based on the total ticket value which
consists of the price charged by the airlines plus any additional taxes and
fees levied by an outside entity at the time of purchase. Fares
include only the price paid at the time of the ticket purchase and do not
include other fees, such as baggage fees, paid at the airport or onboard the
aircraft. Averages do not
include frequent-flyer or "zero fares" or a few abnormally high reported fares.

Table 4: One-Year
Change by Airport: Top 5 Percent Increases and Decreases in U.S. Domestic
Average Itinerary Fare, 2010 2011

Top 100 Airports* Based on 2010 U.S. Originating Domestic Passengers

Fares based on domestic itinerary fares. Itinerary fares consist
of round-trip fares unless the customer does not purchase a return trip. In
that case, the one-way fare is included. Fares are based on the total ticket value which
consists of the price charged by the airlines plus any additional taxes and
fees levied by an outside entity at the time of purchase. Fares
include only the price paid at the time of the ticket purchase and do not
include other fees, such as baggage fees, paid at the airport or onboard the
aircraft. Averages do not
include frequent-flyer or "zero fares" or a few abnormally high reported fares.

Table 5: 10-Year Change by Airport: Top 5 Percent Increases
and Decreases in U.S. Domestic Average Itinerary Fare, 2001-2011

Top 100 Airports*
Based on 2010 U.S. Originating Domestic Passengers

Fares based on
domestic itinerary fares. Itinerary fares consist of round-trip fares
unless the customer does not purchase a return trip. In that case, the one-way
fare is included. Fares are based on
the total ticket value which consists of the price charged by the airlines plus
any additional taxes and fees levied by an outside entity at the time of
purchase. Fares include only the price paid at the time of the
ticket purchase and do not include other fees, such as baggage fees, paid at
the airport or onboard the aircraft. Averages do not include frequent-flyer or "zero fares" or a few
abnormally high reported fares.

Table 6: Percent Changes to 2011 in Domestic Average
Itinerary Fares and the Inflation Rate* by Year Since 1995

(1st Quarter to 1st Quarter for fares; March to March for
inflation)

Fares based on
domestic itinerary fares. Itinerary fares consist of round-trip fares
unless the customer does not purchase a return trip. In that case, the one-way
fare is included. Fares are based on the total ticket value which consists of
the price charged by the airlines plus any additional taxes and fees levied by
an outside entity at the time of purchase. Fares include only the
price paid at the time of the ticket purchase and do not include other fees,
such as baggage fees, paid at the airport or onboard the aircraft. Averages do not include
frequent-flyer or "zero fares" or a few abnormally high reported fares.